Specialized Medical Company (SMC) has entered a 1.1 billion Saudi riyal ($293.29 million) Shariah-compliant credit facility agreement with Saudi Awwal Bank (SAB).

The facility comprises a long-term component of SAR 800 million with a tenure of 144 months, while the short-term facility of SAR 300 million is valid for eight months, the company said in a statement to the Saudi stock exchange on Thursday.

Proceeds from the long-term facility will finance the construction of SMC 4 Hospital in Riyadh, while the short-term facility will support the company’s working capital requirements.

The credit is guaranteed by a promissory note and a mortgage on the land designated for the new hospital, the statement said.

(Editing by Seban Scaria Seban.scaria@lseg.com)